Parkes Shire Council is to follow other neighbouring councils in applying to increase rates by 2.5 per cent this year, after IPART announced a 0.7 per cent rate pegging limit.
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"0.7 is just too low - it meant in real money terms, we're going backwards," The council's general manager Kent Boyd told councillors, at their April meeting at Bogan Gate.
The rate of inflation was 3.5 per cent at time of the report preparation.
"Coupled with continued cost shifting from other levels of government and the ongoing COVID-19 pandemic and natural disasters, this historically low rate peg represented a significant challenge for local councils, who would need to review and reduce the delivery of services to their communities as a result of reduced revenue to fund those services," the staff report to the council meeting said.
Councillors heard that applying for a 2.5 per cent increase would ensure council has sufficient funds to meet its service delivery and asset maintenance obligations.
Council's long-term plans were based on the assumption of a CPI (consumer price index) of 2.5 per cent - and the increase would bring in an additional $266,129 which has been factored into the council's draft budget.
"The impact of 2.5pc on an average residential property in Parkes for example is about $30 a year, but the yield collectively is about $360,000 coming back into the community," Mr Boyd said.
The council's application is subject to assessment and determination by IPART under powers delegated to it by the Minister for Local Government.
